Research Analysts Set Expectations for Domtar Corp’s Q3 2019 Earnings (NYSE:UFS)

Domtar Corp (NYSE:UFS) (TSE:UFS) – Equities research analysts at KeyCorp raised their Q3 2019 earnings per share (EPS) estimates for Domtar in a research note issued to investors on Wednesday, May 1st, Zacks Investment Research reports. KeyCorp analyst A. Josephson now expects that the basic materials company will post earnings of $1.72 per share for the quarter, up from their previous forecast of $1.67.

Domtar (NYSE:UFS) (TSE:UFS) last released its earnings results on Wednesday, May 1st. The basic materials company reported $1.44 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.36 by $0.08. The company had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.44 billion. Domtar had a return on equity of 12.88% and a net margin of 5.63%. Domtar’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.87 earnings per share.

UFS has been the topic of a number of other reports. Zacks Investment Research cut Domtar from a “buy” rating to a “hold” rating in a report on Saturday, April 13th. DA Davidson raised Domtar from a “neutral” rating to a “buy” rating and set a $57.00 price target on the stock in a report on Thursday, May 2nd. Bank of America raised Domtar from a “neutral” rating to a “buy” rating in a report on Tuesday, April 30th. Goldman Sachs Group raised Domtar from a “neutral” rating to a “buy” rating and raised their price target for the company from $51.00 to $56.00 in a report on Friday, May 3rd. Finally, UFS reissued a “sell” rating on shares of Domtar in a report on Thursday, February 21st. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and four have issued a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $52.25.

NYSE:UFS traded down $0.20 on Monday, reaching $41.87. 273,906 shares of the company’s stock traded hands, compared to its average volume of 708,501. The company has a quick ratio of 1.11, a current ratio of 2.19 and a debt-to-equity ratio of 0.35. The stock has a market cap of $2.66 billion, a PE ratio of 9.08 and a beta of 1.96. Domtar has a 12 month low of $33.81 and a 12 month high of $54.50.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 16th. Stockholders of record on Tuesday, July 2nd will be issued a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 4.35%. This is a boost from Domtar’s previous quarterly dividend of $0.44. The ex-dividend date of this dividend is Monday, July 1st. Domtar’s payout ratio is 37.74%.

Hedge funds have recently modified their holdings of the company. Oregon Public Employees Retirement Fund increased its holdings in shares of Domtar by 3,483.6% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 877,934 shares of the basic materials company’s stock worth $25,000 after purchasing an additional 853,435 shares during the last quarter. Winslow Evans & Crocker Inc. purchased a new position in Domtar in the fourth quarter worth about $26,000. Stevens First Principles Investment Advisors purchased a new position in Domtar in the fourth quarter worth about $31,000. Ladenburg Thalmann Financial Services Inc. grew its position in Domtar by 35.8% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 1,263 shares of the basic materials company’s stock worth $63,000 after acquiring an additional 333 shares in the last quarter. Finally, Enlightenment Research LLC purchased a new position in Domtar in the fourth quarter worth about $77,000. 94.33% of the stock is currently owned by hedge funds and other institutional investors.

About Domtar

Domtar Corporation designs, manufactures, markets, and distributes various communication papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and internationally. It operates in two segments, Pulp and Paper, and Personal Care. The company offers business papers, including copy and electronic imaging papers for use with inkjet and laser printers, photocopiers, and plain-paper fax machines, as well as computer papers, preprinted forms, and digital papers for office and home use.

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